Buying the Best Term Insurance Plan
Term insurance is a type of life insurance plan in which you pay the premium for a fixed stretch of time, during which the death benefits will be paid to your beneficiaries in case of unexpected death. As a result, term insurance policies are often known as pure life insurance plans, wherein you collect a large sum of assured money by paying a minimal premium for a given tenure.
Reasons to Buy the Best Term Insurance Plan
A list of the major reasons for you to buy the best term insurance plan is given below:
· Low Premium
The premium for term plans is pretty low as there is no investment component in this insurance plan. You would be required to dedicate less than one per cent of your annual income to get a life cover.
· Offers Financial Security
Investing in a term plan offers financial security to your beneficiaries, in case of your untimely passing away.
· High Flexibility
Term plans are pretty flexible – you can customise the plan according to your needs and can even change the plans at a later date.
· Low Claim Rejection
The best term insurance plans in 2018 are the ones in which the claim rejection possibility is very low. One of the best ways to lower the claim rejection chances is to be accurate and truthful about your health condition, finances, habits, etc.
· No Brokerage
Usually, brokerage fee is the recurrent expenditure that is cited under the premium provision amount. This means that for every premium you pay, a certain fraction of that sum is allotted towards the brokerage charges, which keeps on reducing slowly over time. Typically, it accounts for about 5-6 per cent of the entire premium sum. However, on buying a term plan online, generally, no brokerage charges are applied at all.
Riders are the supplementary and optional benefits that you can add with your term plans. These come for a nominal fee and should be bought only if they are necessary and required for your nominees. Some common riders are critical illness rider, death due to accidents rider, partial or permanent disability rider, etc.
Benefits of Buying the Best Term Insurance Plan
Some of the various advantages of buying the best term insurance plans are the following features:
A term insurance plan is the simplest type of life insurance you can buy that also offers you a return of premium. Also, term plans have no investment element. These are the reasons why term plans are cheap as compared to other categories of life insurance policies. In this, you are only obligated to pay a monthly premium as per your affordability and your insurance establishment fixes a death benefit sum dependent on your premium.
· Tax Benefit
Term insurance policies offer numerous tax-free death benefits to you, as well as your subsequent beneficiaries. The premiums that you pay already have the tax levied on it according to the guidelines. Consequently, your beneficiaries will not have to worry about any further tax being levied upon the death benefit amount.
· Complete flexibility of policy adjustments
On purchasing a term life insurance plan, you are required to sign a contract with your chosen insurance agency- for both online and offline purchasing of plans. This makes the insurance establishment fully accountable to make payments to you or your beneficiaries after the policy matures.
However, you as a policyholder, have the power to alter your policy type, coverage and even the career of your policy as per your requirements. You even have the option of entirely dropping your policy, without being responsible for remunerating any forfeit sum.
· Pay-out in Time
The primary reason for this is the simplicity of these plans – the insurance enterprises are obligated to pay the death benefits as per the plan – either on the maturity of the plan or as soon as a claim is made.
· Living benefits
Most term insurance policies carry living benefits along with the proffered death benefits. The living benefit rider plays a noticeable part when the premium of the term policy is returned.
Term plans have the advantage of convertibility. You can convert your current term plan to something else depending on your situations and requirements. However, there are certain constraints on the conversion charge, time period as well as the converted sum.
How to Choose the Best Term Insurance Plan?
Before purchasing any term plan, it is essential to look at the best term plan options available to you. You need to thoroughly examine, analyse, compare and only then, finally select the best term insurance plan quote from all the available options. Coverfox.com can help you choose a plan according to your needs from the best term insurance plans.